Growth at all costs should not be the case anymore

VietNamNet Bridge – Gross domestic product (GDP) is still an important indicator needed to assess the current level of a country’s growth. However, Governments are advised not to try to increase GDP at all costs while neglecting sustainable development. Economist Pham Chi Lan talks to Tia Sang (Ray of Light) Magazine about the issue. Economist Pham Chi Lan. — Photo cafef.vn Some economists have long assumed that GDP is an inadequate measure of economic development and social well-being, and therefore should not be the sole concern of policymakers. What is your take on this? Measurement of growth using GDP is still recognised today by many countries. It is true that GDP is not the only measure, but it is still the main measure when it comes to the growth of the global as well as individual countries or regions, or to compare different countries. It is still a necessary tool, there are no countries that have stopped using GDP or do not announce their growth rate of GDP each year. Even highly-industrialised countries which have huge GDP foundation where rising GDP rate by 1 per cent or less is a tough task, still have to set that goal. Therefore, GDP as an indicator cannot be disregarded. In the case of Vietnam, if it wants to catch up with other countries, it has to improve growth quality, but at the same time it has to pay attention to growth rate. We might have a growth rate of 6 or 7 per… [Read full story]